Dr Reddy's US growth prospects have improved after its recent settlement with Bristol Myers Squibb to launch an oncology drug
The company had posted a net loss of Rs 36.88 crore for April-June 2019-20, Wockhardt said in a filing to BSE.
The agreement is for 30 million doses, which can be expanded to 400 million doses in the UK.
The manufacturing will be undertaken at CP Pharmaceuticals, a subsidiary of the company based in North Wales, Wockhardt said in a statement.
The company will fill-finish COVID-19 vaccines at CP Pharmaceuticals, a subsidiary of Wockhardt in Wrexham, North Wales.
Key drag for the Dr Reddy's is India business. Compared to its peers, it has a low revenue share in India and that too is majorly in the acute category
Dexamethasone is an inexpensive drug and costs less than Rs 10, Khorakiwala said.
The business comprises a portfolio of 62 brands in multiple therapy areas such as Respiratory, Neurology, VMS, Dermatology, Gastroenterology, Pain and Vaccines, which would transfer to Dr Reddys along with related sales and marketing teams and a manufacturing plant located in Baddi, Himachal Pradesh with all plant employees, a press release from the drug maker said.
US business showed a growth of 4 percent at Rs 189 crore in Q4FY20, but India business revenue fell sharply by 41.2 percent to Rs 177 crore during the quarter YoY.
As per a regulatory filing by the company, India Ratings have revised the rating keeping in view the decision to divest the domestic branded business, ease immediate liquidity requirement and improvement in operating profitability in 9 months of FY2020.
Dr Reddy's Laboratories sprung a surprise on Wednesday when it announced that it will acquire the domestic business of Wockhardt Pharma for Rs 1,850 crore
The company is not planning for debt reduction in particular as part of this transaction, Khorakiwala said.
A stronger domestic market foundation helps as a buffer from fluctuating US sales.
On the question of a timeline for the restructuring, Khoarkiwala said: “It would be rather soon in next month or so.”
The stock touched an intraday high of Rs 344.95 and was the top gainers from the BSE smallcap space.
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The new drugs will target superbug like Methicillin-resistant Staphylococcus aureus, which is a leading cause of rising antimicrobial resistance.
Cipla is in pole position currently and is leading the race to buy a clutch of Wockhardt's business divisions.
Wockhardt, wants to reduce its debt burden and is seeking a valuation between Rs 2,400 crore and Rs 2,700 crore